Intuit Academy - Interest and
dividends module Questions with
100% Correct Answers
Interest the taxpayer receives or that is credited to the taxpayer's account is
considered taxable income in most cases. Correct Answer: True
What are examples of taxable interest? Correct Answer: - Bank accounts
- Certificates of deposit
-Money Market accounts
- Deposited Insurance dividends
- US treasury bills, notes and bonds
- US savings bonds
- Other interests
Generally, amounts you receive from money markets funds should be reported
as dividends, not as interest Correct Answer: True
Interest income from treasury bonds, bills, and notes is subject to federal income
tax but is exempt from all state and local income taxes. True or false? Correct
Answer: True
Is interest on an IRA taxable or non-taxable interest? Correct Answer: Non-
taxable
What is a 1099-OID? Correct Answer: Original issue discount
, Dividends can be paid in multiple ways, though taxpayers might receive most of
their dividends in cash. The taxpayer may also receive distributions through
interest in a partnership, an estate, a trust, a subchapter S corporation, or from
an association that's taxable as a corporation. Correct Answer: True
Ordinary dividends are corporate distributions paid out of the earnings and
profits of a corporation.
Any dividend received on common or preferred stock is an ordinary dividend
unless the paying corporation states otherwise. Correct Answer: True
A subset of ordinary dividends is called Section 199A(opens in a new tab)
dividends, which are eligible for the qualified business income deduction.
Correct Answer: True
Where are Section 199A Dividends from? Correct Answer: Section 199A
dividends are dividends from domestic real estate investment trusts, also
referred to as REITs and mutual funds that invest in domestic REITs.
Qualified dividends must be paid by a U.S. corporation domiciled in a U.S. state
or territory or a foreign corporation listed on a major U.S. stock exchange.
Correct Answer: True - The taxpayer must have owned the stock paying the
dividend for more than 60 days within a specific 121-day holding period.
Capital gain distributions are received when a mutual fund or real estate
investment trust sells assets. The Capital Gain Distribution reported on the 1099-
DIV represents the taxpayers pro-rata share of the proceeds from the sale of the
asset Correct Answer: True
The non-dividend distribution is the part of a distribution that is nontaxable
because it is a return of the taxpayer's cost or another basis in stock or security.
Correct Answer: True
dividends module Questions with
100% Correct Answers
Interest the taxpayer receives or that is credited to the taxpayer's account is
considered taxable income in most cases. Correct Answer: True
What are examples of taxable interest? Correct Answer: - Bank accounts
- Certificates of deposit
-Money Market accounts
- Deposited Insurance dividends
- US treasury bills, notes and bonds
- US savings bonds
- Other interests
Generally, amounts you receive from money markets funds should be reported
as dividends, not as interest Correct Answer: True
Interest income from treasury bonds, bills, and notes is subject to federal income
tax but is exempt from all state and local income taxes. True or false? Correct
Answer: True
Is interest on an IRA taxable or non-taxable interest? Correct Answer: Non-
taxable
What is a 1099-OID? Correct Answer: Original issue discount
, Dividends can be paid in multiple ways, though taxpayers might receive most of
their dividends in cash. The taxpayer may also receive distributions through
interest in a partnership, an estate, a trust, a subchapter S corporation, or from
an association that's taxable as a corporation. Correct Answer: True
Ordinary dividends are corporate distributions paid out of the earnings and
profits of a corporation.
Any dividend received on common or preferred stock is an ordinary dividend
unless the paying corporation states otherwise. Correct Answer: True
A subset of ordinary dividends is called Section 199A(opens in a new tab)
dividends, which are eligible for the qualified business income deduction.
Correct Answer: True
Where are Section 199A Dividends from? Correct Answer: Section 199A
dividends are dividends from domestic real estate investment trusts, also
referred to as REITs and mutual funds that invest in domestic REITs.
Qualified dividends must be paid by a U.S. corporation domiciled in a U.S. state
or territory or a foreign corporation listed on a major U.S. stock exchange.
Correct Answer: True - The taxpayer must have owned the stock paying the
dividend for more than 60 days within a specific 121-day holding period.
Capital gain distributions are received when a mutual fund or real estate
investment trust sells assets. The Capital Gain Distribution reported on the 1099-
DIV represents the taxpayers pro-rata share of the proceeds from the sale of the
asset Correct Answer: True
The non-dividend distribution is the part of a distribution that is nontaxable
because it is a return of the taxpayer's cost or another basis in stock or security.
Correct Answer: True
